Use the Information for the Question(s)below

question 63

Multiple Choice

Use the information for the question(s) below.
Luther is a successful logistical services firm that currently has $5 billion in cash. Luther has decided to use this cash to repurchase shares from its investors and has already announced the share repurchase plan. Currently, Luther is an all-equity firm with 1.25 billion shares outstanding. Luther's shares are currently trading at $20 per share.
-With perfect capital markets, what is the market value of Luther's equity after the share repurchase?

• A)$25 billion
• B)$20 billion
• C)$10 billion
• D)$15 billion

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Definitions:

Horizontal Loading

The addition of new tasks at the same level of complexity and responsibility to an employee's job in order to increase job variety and interest.

Job Enrichment

Refining a job to give the employee more responsibilities, including planning and decision-making tasks, to enhance job satisfaction.

Job Design

Describes the process of assigning duties, responsibilities, and tasks to a job or position to optimize employee performance and satisfaction.

Job Context

The work environment and conditions under which a job is performed, including physical surroundings, job roles, organizational culture, and external influences.